JPMorgan Prime Lending Rate Hiked to 7%

JPMorgan Chase, the largest U.S. bank by assets, raised its prime lending rate to 7% from 6.75% on Thursday morning following a quarter-point rate increase by the Federal Reserve.

The prime rate is a key benchmark for borrowing costs across products such as credit cards and personal loans. Several major banks, including Bank of America, Citigroup, Wells Fargo, and regional lenders, made similar moves to adjust their lending rates.

The increase in prime lending rates may have an impact on JPMorgan's net interest income, but the effect is not automatic. Loans and deposits reset at different speeds, so a 25-basis-point increase in the prime rate does not necessarily translate to a matching boost in lending margins.